Union Bank of the Philippines (UnionBank) enjoyed a 28.1% net income increase during the first quarter of the year as it transitions its services to digital.
“We experienced growth even when we didn’t open new branches. We’re collaborating with financial technologies and unlike others, we’re not competing with them,” UnionBank President and Chief Operating Officer Edwin Bautista told reporters on the sidelines of its annual stockholders meeting on Friday, May 27.
Bautista said it has been heavily investing in improving its online banking processes in the past year, as it banks its growth on the sector. UnionBank currently has “around 300” brick-and-mortar banks, and does not have any plans on building more especially with the changing consumer behavior.
“We have P1 billion ($21.41 million) worth of capital expenditure for the year and 90% will be spent for the improvement of our processes,” Bautista said.
Growth in net interest income and servicing fees drove the surge of UnionBank’s net income in the first four months of the year, increasing by 34.6% and 12.1%, respectively.
Duterte warns energy companies
It looks incoming President Rodrigo Duterte has his eyes on every industry.
Duterte warned local power companies this time, calling them to “shape up” or else he will be forced to open the industry to foreign investors.
“Because if you don’t and the public will suffer, if (the supply problem) remains unaddressed, I’ll invite all foreign investors, including those from Nigeria and Mexico (to come in),” he said as reported by Inquirer.net.
Duterte said opening the industry to others would mean better and cheaper services for consumers.
He has previously called on the telecommunications industry to also improve its services.
Related: PLDT, Globe supports Duterte’s call for faster Internet service - Elyssa Christine Lopez